South Korea advances energy transition strategy to strengthen resilience and green industry

An expansive energy transition strategy has been outlined by South Korea aimed at reshaping its national energy system around renewables, electrification and industrial transformation.

The plan responds directly to heightened geopolitical risks and supply vulnerabilities, signalling a shift from import-dependent energy security towards domestic resilience.

Central targets include exceeding a 20% renewable energy share and deploying 100GW of capacity by 2030, alongside accelerating the adoption of electric and hydrogen vehicles across both public and commercial fleets.

The strategy by South Korea reflects structural change, combining large-scale renewable expansion with the phased retirement of the 60 currently operating coal-fired power plants by 2040 and the introduction of a ‘just transition’ framework to mitigate regional and labour impacts.

Industrial policy plays a central role, with support directed towards green manufacturing ecosystems, hydrogen-based steel production, carbon capture technologies and electrified industrial processes.

Rising electricity demand, driven in part by AI infrastructure and data centres, reinforces the need for grid modernisation, including decentralised and bidirectional systems designed to balance regional supply and demand more efficiently.

Governance mechanisms extend beyond infrastructure, incorporating market reforms, green finance instruments and subsidy reallocation away from fossil fuels.

Citizen participation is also embedded through ‘energy income’ models, enabling local investment in renewable projects.

South Korea positions energy transition not only as a climate objective but as a broader economic and social restructuring agenda centred on resilience, competitiveness and public engagement.

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